Fewer deals drives non-food goods price rise

A REDUCTION in the need to discount items has driven the first price rise in non-food goods for 15 months.

The latest data from the British Retail Consortium showed a 0.2 per cent increase in prices in March, compared to a 0.4 per cent fall in February.

Experts said the increases proved retailers had less stock to clear, resulting in a reduction in the number of promotions and discounts – and more full-price goods sold.

Overall, shop price inflation grew by 1.4 per cent, while food items rose in price by 3.5 per cent – the same as the previous month.

“Non-food prices have edged into inflationary territory for the first time in 15 months, driven by gradual growth across a number of categories rather than any one seeing a substantial increase,” said Helen Dickinson, British Retail Consortium director-general. “It bears out anecdotal evidence that demand is strengthening and promotions are less widespread than last year.”

In March, health and beauty products revealed a strong rise compared to the same period last year – increasing in cost by 3.4 per cent. But the clothing and footwear category reported a sharp deceleration in its deflation rate to 2.2 per cent in March from 4.2 per cent in February.